Home: Commerce MCQs

**Q.** The Internal Rate of Return (IRR) is the rate of discount that makes Net Present Value (NPV)

(A) zero

(B) one

(C) positive

(D) negative

The answer is: (A) zero ☑

**Q.** An investment should be accepted if its Net Present Value (NPV) is

(A) 0

(B) 1

(C) positive

(D) negative

The answer is: (C) positive ☑

**Q.** An investment should be accepted if

(A) Rate of Return > Opportunity Cost

(B) Rate of Return < Opportunity Cost

(C) Rate of Return = Opportunity Cost

(D) A, B and C are irrelevant

The answer is: (A) Rate of Return > Opportunity Cost ☑

**Q.** World Trade Organization (WTO) was established on 1 January

(A) 1993

(B) 1995

(C) 1997

(D) 1999

The answer is: (B) 1995 ☑

**Q.** The main function of WTO is to ensure that trade flows:

**I.** smoothly

**II.** freely

**III.** predictably

(A) I only

(B) II only

(C) I and II only

(D) I, II and III

The answer is: (D) I, II and III ☑

# Commerce MCQs

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